April 8, 2025

SEC Whistleblower Reform Act Offers Key Remedies for Corporate Whistleblowers

Washington—Government Accountability Project applauds key updates offered through the SEC Whistleblower Reform Act of 2025, recently reintroduced by Sens. Chuck Grassley (R-IA) and Elizabeth Warren (D-MA). As explained by the U.S. Senate Committee on the Judiciary, the SEC Whistleblower Reform Act of 2025 seeks to strengthen whistleblower protections at the Securities and Exchanges Commission (SEC), ensure timely processing of whistleblower claims, and protect whistleblowers from retaliation.

Among these updates include remedying the harmful, unintended effects of the U.S. Supreme Court’s finding in Digital Realty Trust, Inc. V. Somers (2018). The court in that case determined that employees who report SEC violations internally do not qualify as whistleblowers under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, nor are they protected against retaliation in this way. That was not Congress’ intention, and that puts SEC and CFTC whistleblowers at risk. The SEC Whistleblower Reform Act of 2025 closes this gaping loophole by stating that a whistleblower’s disclosure to their supervisor about SEC violations is considered protected activity and are consequently protected from retaliation. Additionally, the legislation includes an anti-gag provision that protects whistleblowers who want to speak up.

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